PPRuNe Forums - View Single Post - Private equity take-over for Virgin Australia?
Old 21st Apr 2020, 19:32
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Sunfish
 
Join Date: Aug 2004
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And this one. Journalists are lazy. Someone is feeding them. The negative message here is that government has already done enough. Virgin is greedy.

The Government doesn't want Virgin Australia to go the way of Ansett, so why won't it hand over more cash?

On March 31, Virgin went into a trading halt and confirmed it had asked the Federal Government for $1.4 billion to help it get through the pandemic.

Ultimately, the Government's line was that it is "not in the business of owning an airline".

Part of the reason the Federal Government gave for its reluctance to offer Virgin a loan was that it had already funded more than $1 billion worth of assistance for the airline sector.
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That included waiving fees for fuel excise and security screening charges, as well as for select regional routes and last week's announcement that the Government would underwrite the cost to resume some domestic routes.

Remarking on the company going into voluntary administration on Tuesday morning, Deputy Prime Minister Michael McCormack noted Virgin had been able to access most of the money already on the table.

"Virgin has been able to access the initial announcement, where $715 million was put on the table by way of waving fees when it comes to fuel excise, Airservices Australia charges and such things as security screening," he said.

Mr McCormack said Mr Scurrah had told him Virgin had benefited from those announcements to the tune of tens of millions of dollars.
https://www.abc.net.au/news/2020-04-...-said/12169952

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